Bacon Lovers Beware, Shortage Is on the Way

Global drought and higher feed prices are to blame

The Christian Science Monitor reports that Britain’s National Pig Association is warning of a large-scale shortage of bacon and other pork products in 2012, thanks to the rising cost of feed. The NPA said, “A world shortage of pork and bacon next year is now unavoidable.”

The statement continued, “New data shows the European Union pig herd is declining at a significant rate, and this is a trend that is being mirrored around the world. Pig farmers have been plunged into loss by high pig-feed costs, caused by the global failure of maize and soya harvests.”

The feed shortage could increase pork and pork-related product prices across the industry and impact the performance of U.S. producers such as Smithfield Foods (NYSE:SFD) and Tyson Foods (NYSE:TSN). The shortage in the U.S. isn’t as bad as in Europe, though, according to CNBC.